Flutter Entertainment PLC (LSE:FLTR) shot up 12% as its US business FanDuel delivered results well ahead of expectations in its first quarterly update since departing the London Stock Exchange for New York.
Concerns about FanDuel had arisen following a disappointing update from rival DraftKings after a series of losing results, but Flutter raised its guidance for the year, highlighting the strength of its US arm.
Second-quarter revenue at the Paddy Power and Betfair owner rose 20% to US$3.6 billion, with underlying profits up by 17% at US$738 million.
Guidance for the year now anticipates revenue growth of over 20% across the group, with underlying profits expected to increase by 34% at the mid-points.
Taxation, another US concern, will cost US$40 million net in the second half, with reported US profits expected to rise by 4% to US$740 million.
Chief executive Peter Jackson said it was a strong quarter, beating consensus and increasing both revenue and adjusted EBITDA guidance.
“Our US performance was excellent in both new and existing states, reflecting our disciplined approach to customer acquisition and our best-in-class product, which offers our sportsbook customers the best pricing in the market.
"The returns we are seeing give us the confidence to continue driving customer acquisition in the second half, building a bigger business, which bodes well for 2025 and beyond.
"Outside of the US, we delivered an engaging offering during the European Football Championships, with over four million customers placing a bet on the tournament, and results during the tournament being very favourable for us.”